Segment information for the three months ended March 31, 2017 and 2016 is as follows (in thousands):



	Three Months Ended March 31,
	2017			2016
Revenue
Travel Network	$	663,477		$	625,476
Airline and Hospitality Solutions	257,976			238,380
Eliminations	(6,100		)	(4,313		)
Total revenue	$	915,353		$	859,543

Adjusted Gross Profit ^(a)
Travel Network	$	319,018		$	304,914
Airline and Hospitality Solutions	105,348			100,876
Corporate	(23,589		)	(17,594		)
Total	$	400,777		$	388,196

Adjusted EBITDA ^(b)
Travel Network	$	290,222		$	273,174
Airline and Hospitality Solutions	85,517			82,938
Total segments	375,739			356,112
Corporate	(78,178		)	(68,632		)
Total	$	297,561		$	287,480

Depreciation and amortization
Travel Network	$	20,468		$	18,530
Airline and Hospitality Solutions	38,777			35,793
Total segments	59,245			54,323
Corporate	46,425			41,960
Total	$	105,670		$	96,283

Adjusted Capital Expenditures ^(c)
Travel Network	$	26,273		$	22,970
Airline and Hospitality Solutions	62,162			60,420
Total segments	88,435			83,390
Corporate	16,979			12,039
Total	$	105,414		$	95,429

______________________________


(a)	The following table sets forth the reconciliation of Adjusted Gross Profit to operating income in our statement of operations (in thousands):



	Three Months Ended March 31,
	2017		2016
Adjusted Gross Profit	$	400,777	$	388,196
Less adjustments:
Selling, general and administrative	144,441		133,856
Cost of revenue adjustments:
Depreciation and amortization ⁽¹⁾	73,697		66,507
Amortization of upfront incentive consideration ⁽²⁾	16,132		12,337
Stock-based compensation	3,181		4,074
Operating income	$	163,326	$	171,422


(b)	The following table sets forth the reconciliation of Adjusted EBITDA to income from continuing operations in our statement of operations (in thousands):



	Three Months Ended March 31,
	2017		2016
Adjusted EBITDA	$	297,561	$	287,480
Less adjustments:
Depreciation and amortization of property and equipment ^(1a)	61,300		53,665
Amortization of capitalized implementation costs ^(1b)	9,189		8,488
Acquisition-related amortization ^(1c)	35,181		34,130
Amortization of upfront incentive consideration ⁽²⁾	16,132		12,337
Interest expense, net	39,561		41,202
Other, net ⁽³⁾	15,234		(3,360		)
Restructuring and other costs ⁽⁴⁾	—		124
Acquisition-related costs ⁽⁵⁾	—		108
Litigation costs, net ⁽⁶⁾	3,501		(3,846		)
Stock-based compensation	8,034		10,289
Provision for income taxes	31,707		41,424
Income from continuing operations	$	77,722	$	92,919

______________________________________________________


(1)	Depreciation and amortization expenses:


a.	Depreciation and amortization of property and equipment includes software developed for internal use.


b.	Amortization of capitalized implementation costs represents amortization of upfront costs to implement new customer contracts under our SaaS and hosted revenue model.


c.	Acquisition-related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date and amortization of the excess basis in our underlying equity in joint ventures.

(2)

Our Travel Network business at times makes upfront cash payments or other consideration to travel agency subscribers at the inception or modification of a service contract, which are capitalized and amortized over an average expected life of the service contract, generally over three years to five years. Such consideration is made with the objective of increasing the number of clients or to ensure or improve customer loyalty. Such service contract terms are established such that the supplier and other fees generated over the life of the contract will exceed the cost of the incentive consideration provided up front. Such service contracts with travel agency subscribers require that the customer commit to achieving certain economic objectives and generally have terms requiring repayment of the upfront incentive consideration if those objectives are not met.

(3)

In the first quarter of 2017, we recognized a $12 million loss related to debt modification costs associated with our debt refinancing. In the first quarter of 2016, we recognized a gain of $6 million associated with the receipt of an earn-out payment from the sale of a business in 2013. In addition, other, net includes foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency.


(4)	Restructuring and other costs represent charges associated with business restructuring and associated changes implemented which resulted in severance benefits related to employee terminations, integration and facility opening or closing costs and other business reorganization costs.


(5)	Acquisition-related costs represent fees and expenses incurred associated with the acquisition of the Trust Group and Airpas Aviation (see Note 2, Acquisitions).


(6)	Litigation costs, net represent charges and legal fee reimbursements associated with antitrust litigation (see Note 10, Contingencies).


(c)	Includes capital expenditures and capitalized implementation costs as summarized below (in thousands):



	Three Months Ended March 31,
	2017		2016
Additions to property and equipment	$	88,318	$	75,472
Capitalized implementation costs	17,096		19,957
Adjusted Capital Expenditures	$	105,414	$	95,429